A company reports the following for one of its products.

Direct materials standard (2 pounds @ $4 per pound)	$ 8	per unit
Actual units produced	120,000	units
Actual cost of direct materials used	$ 994,000

Compute the total direct materials variance and identify it as favorable or unfavorable.

Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

Please show notes.